Outsourcing: A Strategic Advantage to Growing Tech Companies

Many businesses have relied upon outsourcing to handle parts of their technical operations for a while now. Also, about 78% of businesses report a positive attitude toward their outsourcing partners. In short, here’s why and how tech companies benefit from IT outsourcing services today.    

What is outsourcing?  

Outsourcing is a strategic decision to get third-party resources to help with business operations. Besides that, these outsourced tasks consist of a wide range of services, from back-office support to IT personnel. Moreover, a third-party company usually provides resources or people to supply business needs. What’s more, is that these can be project-based or long-term agreements.   

  

What Types of Services Can You Outsource for Your Business?  

There is a wide range of business services wherein you can easily outsource. Here are some areas in general where you can outsource to a third-party organization:  

Human Resource  

• Human Resource Outsourcing (HRO) covers HR functions like payroll processing, employee benefits, hiring, and training. Moreover, hiring HR specialists provides a centralized platform for data accuracy and brings in qualified candidates for a new position. Furthermore, more than 40% of larger companies use outsourcing for some mix of employee HR documentation services and operations, but none entirely outsource all functions. 

  

Marketing  

Third-party marketing professionals can analyze the way you sell your brand in an unbiased manner. Also, 30% of marketing professionals stated they outsourced content marketing tasks. This means that outsourcing can take ad design, content creation, social media posting, email marketing, and other marketing efforts off your plate. In addition, outsourcing could bring in more marketing perspectives and help your brand stay up to date with the latest trends.  

  

Sales  

Outsourcing sales agencies or professionals can perform tasks like outbound and inbound calling and leads management. These experts can help generate leads, set appointments, and penetrate new markets. Furthermore, up to 43% more leads can be generated by an outsourced lead-generation department than by an in-house one. 

  

Accounting and Finance  

Every business must comply with bookkeeping standards, tax laws, accounts receivable, and other accounting or finance-related tasks. Also, an accounting and finance outsourced team can handle and simplify bookkeeping, accounting, and financial planning. This leads to the aim that the required finance-wise processes are met by handling. Furthermore, this is the reason why around 44% of businesses outsource their financial tasks.   

  

Customer Support  

Customer support done by a third-party vendor covers voice and non-voice customer support services. Apart from this, nearly 54% of all businesses contact customers through outside support staff. Furthermore, you can ensure your customer service strategy with your outsourcing partner on how to deal with your customers.  

  

Admin  

Administrative outsourcing helps with monotonous tasks and is no different from traditional administrative support staff. Similarly, an outsourced admin staff takes the administrative burden off your shoulders as they manage the paperwork and other back-office work. Hence, it comes as no surprise as this sector is projected to reach $21 billion in revenue this year.   

  

Shipping and Logistics  

Shipping and logistics outsourcing is when a business handles and fulfills various supply chain functions. Also, shipping and logistics outsourcing allows a business to meet customer demand by offering fast shipping, packing, and delivery services. Consequently, 66% of logistics executives increased their budget for outsourcing logistics in 2021 alone.   

Creatives  

There may come a need to outsource talents to create a logo or packaging design for your brand. According to a study by Statista, marketing professionals outsourced graphic design (47%), followed by video design (43%), and lastly, copywriting (37%) in terms of content creation tasks. 

For instance, at RipeConcepts, since we have an advantage due to time zone differences, we offer only the best-in-class digital creative design from branding, product renderings, and more, while our clients sleep.  

  

Information Technology   

IT outsourcing is the business practice of using third-party vendors to handle some or all IT functions. These can supplement or replace an in-house IT department, which tends to be more expensive and in turn, cuts operating costs significantly. 

  

For growing tech companies, working with an outsourced team of IT resources can help with the technical support you need in your business. According to a study, 96% of executives recognized service providers as the source for data development and analytics capabilities.  

Below are the frequently outsourced IT services:  

• Application/Software Development. It is the developing or enhancing software or application, including design, testing, release, and production.  

• Technical Support or Help Desk. This handles customer service dealing primarily with technology or software issues via different channels like live chat and phone or email support.  

• Web Design. This IT service involves people developing a website’s look and feel.   

• Web Development. It involves building, programming, and maintaining websites for the Internet through third-party resources.  

• Network Management. This is overseeing and maintaining your firewalls, routers, and other hardware to ensure that network resources are in top shape.  

• Data Entry. This IT service pertains to entering information or transcribing records in a database.  

• Data Analysis. By the word itself, this analyzes data to gain insights for a business.  

  

Advantages of Strategic Outsourcing  

There are many reasons why companies across the globe turn to outsource for their business operation needs. As the market becomes increasingly competitive, outsourcing enables businesses to concentrate on their top objectives while boosting productivity for some labor-intensive tasks for which they may not have the necessary resources. In addition, there are more cases where a company depends on outsourcing:    

  

• Reduce operation costs - Outsourcing eliminates the need to hire in-house employees and tech. Also, businesses can save up to 70% on labor costs by partnering with an outsourcing provider. This brings the idea that companies would save up money by hiring an in-house resource from recruitment to onboarding through outsourcing. 
• Save time and effort - You would have extra time since third-party resources will handle some tasks. According to a recent study, 24% of growing brands outsource for improved efficiency and 18% for expert assistance, cutting in-house tasks significantly.  
• Gain access to a qualified talent pool - Easily tap into exemplary and experienced tech talents anywhere in the world. In fact, in the US alone, about 300,000 jobs are being outsourced annually since it provides employers with hard-to-source talent and expertise who may be based abroad or elsewhere.  
• Scale quickly - Outsourcing supports any tech company in accomplishing tasks that accelerate profit margins while reducing costs. Moreover, a survey found that around 37% of small businesses outsource at least one important business process. Therefore, it proves how outsourcing can help a business grow by providing support toward current and upcoming plans. 
• Access to technology - This business strategy opens new doors to other technological opportunities, both hardware, and software-wise. Approximately 51% of technology executives stated that they outsource application and software maintenance, which has to do with how the IT sector is going forward to digital transformation with outsourcing. 

  

IT outsourcing services effectively provide aid in IT-related business processes worldwide. Most importantly, you can effectively scale your business, especially with RipeConcepts on the line, and have a team of best-in-class experts at a fraction of the cost.   

What are you waiting for? Contact us now through rc.connect@nagarro.com, and we’ll get you started toward technological and creative success.  

---

Outsourcing